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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: Manlobbi ✺  😊 😞
Number: of 6243 
Subject: Re: Question of the week
Date: 09/17/26 5:11 AM
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No. of Recommendations: 3
In most countries, taxes are based on physical residency. Non-citizen is an immigration status, and non-resident is a tax status. If you move away, you become a non-resident and stop paying local taxes, even if you are a citizen.

The US bases taxes on citizenship, and is an outcast as the only country in the world that forces that. The only other country that comes close is Eritrea, but that levies only a flat ~2% "diaspora tax" on the income of its citizens living abroad.

A US citizen must report global income to the IRS no matter where they live, meaning a US citizen can never be a tax non-resident. In the US, the non-resident tax status only applies to non-citizens who live abroad.

So on the subject of investing, whilst most countries use the term non-resident, to get a close equivalent in the US you really need to use the term non-citizen.

- Manlobbi
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